Owners manual

Section 12: Real Estate and Lending 157
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 157 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
ALG Mode:
z If fees are stated as a percentage of the mortgage amount (points),
recall the mortgage amount (:$); press -; key in the fee
(percentage) rate; press b$.
z If fees are stated as a flat charge, recall the mortgage amount
(:$); press -; key in the fee amount (flat charge); press $.
z If fees are stated as a percentage of the mortgage amount plus a flat
charge, recall the mortgage amount (:$); press -; key in the
fee (percentage) rate, press b-; key in the fee amount (flat
charge); press $.
4. Press ¼ to obtain the interest rate per compounding period.
5. RPN: To obtain the annual nominal percentage rate, key in the number
of periods per year, then press µ.
5. ALG: To obtain the annual nominal percentage rate, press µ. Key in the
number of periods per year, then press ³.
Example 1:
A borrower is charged 2 points for the issuance of his mortgage. If
the mortgage amount is $160,000 for 30 years and the interest rate is 5.5% per
year, with monthly payments, what true annual percentage rate is the borrower
paying
?
(One point is equal to 1% of the mortgage amount.)
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f] f[
g gÂ
f
CLEAR
G f
CLEAR
G
30
gA
30
gA
360.00
Months (into n)
5.5
gC
5.5
gC
0.46
% monthly interest rate
(into i).
160000
$
160000
$
160,000.00
Loan amount (into PV).
P P
–908.46
Monthly payment
(calculated).
:$
2
b-
$
:$-2b
$
156,800.00
Actual amount received
by borrower (into PV).
¼ ¼
0.47
% monthly interest rate
(calculated).
12
§
§12³
5.68
Annual percentage rate.